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A "feed " question feed repos question Rate Topic:

#1 sohowdoyoupronouncethat

Stock Proctology Intern

Group: Members
Posts: 1
Joined: 01-April 03

Posted 01 May 2003 - 05:46 AM

I know this must seem awfully dumb, thats why i'm way-
down-here, but whats a repo? are repos short term loans the fed makes to banks or instruments of debt it offers? and how do the receivers of the repos use them?

Is this the right forum for this question?

Back to top of the page up there ^
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#2

Group: Guests

Posted 01 May 2003 - 12:57 PM

A repurchasing agreement is simply the sale of securities (usually treasury securities) with the promise of buying them back at a higher price at a later date. They are usually issued by corporations, state and local governments, and some other big non-bank institutions. The concept of a repurchasing agreements market is very similar to a federal funds market. In that case, why does a repurchasing agreements market exist? That is because the federal funds market is only open to depository institutions.